KaDeWe has a new owner

The ownership of the Berlin luxury department store KaDewe is now fully owned by the Thai Central Group. The previous owner, the insolvent company Signa Prime Selection, and the group had reached an agreement for the full acquisition, Central announced on Friday. Previously, this had Handelsblatt newspaper talked about it. The KaDeWe building in Berlin is part of the insolvent Signa Prime selection of Austrian entrepreneur René Benko. We knew that the Central Group had been interested in its acquisition for a long time. The price would be more than 1.2 billion euros. Signa and Central have been business partners for many years. Since 2015, Central has held a slim majority in the department store sector of the KaDeWe Group, but not in real estate. KaDeWe Group properties also include the Alsterhaus in Hamburg and the Oberpollinger in Munich. The current agreement is expected to relate only to the KaDeWe property.

Meanwhile, it has become known that the holding company of the largely insolvent real estate and trading group Signa will not be restructured as planned. The receiver of the holding company founded by René Benko announced this on Thursday in Vienna. The initial restructuring concept envisaged that the largest sub-companies, Signa Prime and Signa Development, were also to be renovated. However, a trust plan has been drawn up for both units for the orderly sale of their entire portfolios, which include the Elbtower, KaDeWe and the department stores of the Galeria Karstadt Kaufhof group.

Since the holding company occupies a relatively low rank in the ranking of primary and development creditors, it can no longer hope to reorganize by exploiting these portfolios, explained the receiver. Instead, the insolvency procedure of the holding company should now take place in the form of a so-called bankruptcy, in which the emphasis is on the rapid realization of assets. Unlike a restructuring, creditors cannot expect 30 percent of their claims to be repaid in bankruptcy.

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